Why Dendreon, E-House (China) Holdings, and Red Robin Gourmet Burgers Jumped Today

The stock market had a generally terrible day Tuesday, but these stocks still managed to post solid gains. Find out more about what made them soar.

May 20, 2014 at 8:05PM
Longview

Stocks fell sharply on Tuesday, as poor performance on the earnings front from the retail industry weighed on investor confidence. Given the role that consumers have played in the overall economic recovery, any signs of fatigue on their part could suggest a coming turning point in the five-year-old bull market. Despite losses for major-market benchmarks of around three-quarters of a percent, Dendreon (NASDAQ:DNDN), E-House (China) Holdings (NYSE:EJ), and Red Robin Gourmet Burgers (NASDAQ:RRGB) managed to climb substantially today.

Dndn
Source: Dendreon.

Well-known biotech Dendreon climbed nearly 8% after issuing new data on its top drug, prostate-cancer treatment Provenge. The data supported further gains in survival from using Provenge, but more importantly from an investor's standpoint, it once again put Dendreon on the radar screen for speculative traders bidding up share prices. From a long-range perspective, though, today's news does little to solve Dendreon's biggest problem: convincing doctors that the expensive treatment is markedly superior to other forms of treatment. Until Dendreon finds a solution to that issue and thereby boosts sales of the key drug, it'll be hard for the stock to hold onto any share-price advance for very long.

E-House (China) Holdings gained 13% after reporting first-quarter earnings. The Chinese real-estate company gave investors exactly what they wanted to see this morning, with earnings per share that doubled what shareholders had expected to see on a 40% jump in total revenue. In particular, E-House's online services experienced amazing growth, with sales nearly doubling from year-ago levels, and better than 50% growth in real-estate information and consulting services also bolstered the company's bottom line. E-House remains optimistic for the current year as well. Even though economists remain concerned about potential bubble conditions in the Chinese real-estate market, the services that E-House provides could actually hold up reasonably well even in an orderly decline in that market, as long as panic doesn't dry up the appetite for real estate entirely.

Rrgb

Source: Red Robin Gourmet Burgers.

Casual restaurant chain Red Robin jumped 12% after topping earnings-per-share estimates by a dime in the first quarter. Same-store sales jumped 5.4%, with net income rising 26% on an 11% gain in overall revenue. Higher average prices provided the biggest part of Red Robin's gains, with only a slight increase in traffic helping the restaurant's numbers as well. Red Robin says that comps could fall toward low single-digit percentages for the full year, but it expects to open new restaurants and remodel existing locations. With initiatives like its Finest premium burger line paying off, Red Robin is aiming higher for the future.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour. (That's almost as much as the average American makes in a year!) And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click here to discover more about this industry-leading stock, and join Buffett in his quest for a veritable landslide of profits!

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers